How to Talk About Money in English - Spoken English Lesson

Summary

This lesson from Oxford Online English teaches how to talk about money in English. It covers important vocabulary and phrases related to spending habits, saving, salaries, and borrowing. The video explores cultural aspects of discussing money, like the sensitivity around asking someone's salary. Through dialogues, learners discover how to budget, manage expenses, and discuss financial challenges such as debt and investments. The video also prompts viewers to think about their own financial habits, whether they are frugal, big spenders, or investors, while encouraging interaction through reflective questions.

Takeaways

• 💸 It can sometimes be seen as rude to discuss money in the UK or US, but people still talk about it frequently.
• 💼 Spending habits vary: some people save by budgeting, while others find it difficult due to small, frequent expenses.
• 🧳 Sacrificing small luxuries can allow you to save for bigger goals like traveling.
• 🤑 You can spend, save, or waste money. Someone who spends a lot is a 'big spender,' while someone who saves is 'frugal.'
• 💰 When saving, you can 'save up' for a specific goal, and budgeting helps you stick to your plan.
• 📉 Struggling financially can be described as 'just getting by,' 'struggling to make ends meet,' or 'barely making ends meet.'
• 🏠 Borrowing money, like taking out a loan or mortgage, leads to debt if you don't make payments. If unpaid, you may have to declare bankruptcy.
• 💳 Credit cards can be 'maxed out' if you borrow the maximum allowed, which leads to serious debt.
• 📈 Investing money in shares, bonds, or stocks can increase your savings, but it's risky if the market crashes.
• 🤔 People often debate whether 'money can buy happiness.' It’s worth considering personal views on this.

Q & A

Why is it sometimes considered rude to talk about money in the UK or US?

In the UK and US, discussing personal finances, especially topics like salary, can be seen as impolite or inappropriate. This is due to cultural norms around privacy and sensitivity towards personal financial situations.

What are some common strategies for saving money mentioned in the lesson?

The lesson suggests making a budget, which involves planning how much to spend and on what, cutting back on less important things, and avoiding small expenses that can add up over time.

What does it mean to 'splash out' on something?

'Splash out' means spending money on something you enjoy, usually something that is more expensive or a treat for yourself.

How does the phrase 'make ends meet' relate to financial struggles?

The phrase 'make ends meet' refers to covering all basic expenses such as rent, bills, and food. If someone says they can barely make ends meet, it means they are struggling financially and have little to no extra money left over.

What is the difference between 'saving money' and 'wasting money'?

Saving money refers to putting aside money for future use, often by being frugal or careful with spending. Wasting money refers to spending money on things that are not necessary or beneficial.

How does a mortgage differ from other loans?

A mortgage is a specific type of loan used to buy a house or apartment. It typically requires monthly payments and includes interest. The key difference is that a mortgage is tied to property, while other loans may be used for cars, furniture, or other expenses.

What does it mean to 'max out' a credit card?

'Max out' means borrowing the maximum amount of money allowed on a credit card, effectively reaching the credit limit.

What are shares or stocks, and how do they relate to investments?

Shares or stocks represent ownership in a company. When you invest in shares, you are buying a portion of a company. The value of shares can go up (take off) or down (crash), and investors hope to make a profit by buying shares at a low price and selling them at a higher price.

What does it mean to 'double' or 'triple' your money in investing?

Doubling your money means increasing your investment by two times, while tripling your money means increasing it by three times. For example, if you invest $100 and it becomes $300, you have tripled your money.

What happens if you declare bankruptcy?

Declaring bankruptcy means that you are unable to pay off your debts, and while your debts are cancelled, you typically lose any valuable assets you own. It's often a last resort for people who cannot keep up with their financial obligations.

Outlines

00:00

💬 Introduction to Talking About Money in English

In this introductory section, Kasia welcomes viewers to the lesson on how to talk about money in English. She addresses common topics like spending habits, salary, and borrowing money. Kasia also touches on the cultural sensitivity around discussing money in places like the UK and US, highlighting that while it may sometimes be considered impolite, people still talk about it. A conversational scenario is presented where two people discuss saving money, budgeting, and cutting back on non-essential expenses. The section ends with questions about balancing frugality with indulgence.

05:02

💰 Understanding Salaries and Cost of Living

This section discusses the complexities of salary and living expenses, particularly in an expensive city like London. Through a dialogue, we learn that a salary that might be sufficient in one city may not be enough in London due to the high cost of living. Kasia explains how salaries are discussed in English-speaking countries, typically referring to the annual pre-tax figure. The concepts of 'getting by'—barely covering expenses—and being 'well-off'—having enough to live comfortably—are introduced, with examples to illustrate each point.

10:05

🏦 Borrowing, Loans, and Debt

This part focuses on borrowing money, taking out loans, and managing debt. Kasia describes a situation where someone is in serious debt, struggling with mortgage payments and credit card debt, leading to potential bankruptcy. Key terms like 'mortgage,' 'interest,' 'pay off,' and 'declare bankruptcy' are explained. The section provides a detailed explanation of the financial responsibilities and risks associated with borrowing money and being in debt.

15:07

📈 Investing and Risks

This section shifts focus to investments and the potential risks involved. Through a dialogue, a person excitedly discusses investing in shares they believe will generate huge returns, though their lack of research raises concerns. Kasia explains key investment terms like 'shares,' 'stocks,' 'take off,' and 'crash.' The risks of losing money through bad investments—'getting wiped out'—are highlighted, along with strategies for potentially doubling or tripling investments. Viewers are encouraged to consider what they would invest in if given the chance.

👋 Closing Thoughts and Final Question

The final section concludes the lesson with a reflective question about whether money can buy happiness. Kasia encourages viewers to share their thoughts in the comments, tying together the themes of the lesson. She also invites viewers to visit the Oxford Online English website for more lessons. The section ends with a friendly goodbye and encouragement to continue learning.

Keywords

💡Spending habits

Spending habits refer to the way people typically manage and use their money. In the video, this concept is explored through budgeting and choices like splurging on items or saving for bigger goals. For example, one character explains how they budget weekly to control their spending and save for vacations.

💡Salary

Salary is the amount of money a person earns from their job, usually expressed annually before tax. The video discusses salaries in the context of affordability, comparing earning £25k or £45k per year and whether such salaries are sufficient to live comfortably in London.

💡Frugal

Frugal means being careful about how much money is spent, avoiding unnecessary expenses. In the script, one person expresses how they are willing to be frugal in daily life to save for things they value more, like traveling. This contrasts with someone who enjoys treating themselves more often.

💡Make ends meet

Make ends meet means earning just enough to cover basic expenses like rent and bills. This phrase is used to describe how a salary might be insufficient in London, as some people earn enough to survive but have little extra money left over.

💡Debt

Debt refers to money that is owed, often from loans or credit. The video mentions someone who is deeply in debt, with multiple loans and maxed-out credit cards. It highlights how debt can spiral out of control and lead to bankruptcy.

💡Mortgage

A mortgage is a loan taken out to buy a house, with regular payments that include interest. In the video, someone falls behind on their mortgage payments, which puts them at risk of losing their home, illustrating the risks of borrowing too much money.

💡Invest

To invest means putting money into assets like stocks, bonds, or other ventures with the hope of earning a profit. In the video, a character invests all their savings into shares they believe will increase in value, though their friend warns them about the risks of losing everything.

💡Saving up

Saving up refers to putting aside money over time for a specific goal. In the script, one character explains that they have been saving up for a holiday, illustrating the importance of financial planning and prioritizing spending based on long-term goals.

💡Splash out

Splash out means to spend a lot of money on something, often as a treat or indulgence. The video contrasts the idea of splashing out with being frugal, with one character admitting they enjoy spending money on things they don’t necessarily need, like takeout meals.

💡Bankruptcy

Bankruptcy is a legal process where an individual declares they cannot repay their debts. The video discusses the consequences of borrowing beyond one's means, using the example of someone facing bankruptcy after accumulating too much debt through credit cards and loans.

Highlights

Introduction to talking about money in English, covering spending habits, salary, borrowing money, and more.

Discussion about whether it’s appropriate to talk about money in different cultures, especially in the UK and US.

Example conversation on how to save money by budgeting, cutting back on unnecessary expenses, and prioritizing bigger goals like travel.

Explanation of useful phrases like 'spend money on,' 'waste money,' 'big spender,' and 'frugal,' with examples of how to use them in context.

Introduction to saving money and using the phrasal verb 'save up,' with examples like saving for a holiday or a car.

Explanation of how making a budget and sticking to it helps with saving, and the importance of cutting back on non-essential spending.

Discussion on salaries, including how to talk about annual salaries, what ‘25k’ means, and differences in cost of living in places like London.

Explanation of terms like 'making ends meet,' 'getting by,' and 'well-off,' to describe different financial situations.

Insight into dealing with debt, including taking out loans, mortgages, maxed-out credit cards, and the concept of declaring bankruptcy.

Explanation of financial terms like 'interest,' 'repay,' 'pay off,' and what it means to be 'in debt.'

Example conversation discussing investment in stocks, with a focus on how risky investments can lead to either profit or loss.

Definitions and examples of stock market terms like 'shares,' 'bonds,' 'stocks,' 'take off,' and 'crash.'

Explanation of what it means to double or triple your money, and how bad investments can lead to losing everything or getting wiped out.

Encouragement for viewers to reflect on their own spending and saving habits, and how they manage money.

Closing thoughts on whether money can buy happiness, inviting viewers to share their opinions.

Transcripts

Hi, I’m Kasia.

Welcome to Oxford Online English!

In this lesson, you’re going to learn how to talk about money in English.

You’ll learn useful English words and phrases to talk about common money topics such as your

spending habits, salary, borrowing money, and more.

But wait, is it okay to talk about money?

Maybe you heard someone say that it can be rude to talk about money in the UK or in the

US.

Sometimes it’s not appropriate.

For example, it’s generally not acceptable to ask someone how much they earn.

However, people talk about money all the time; in this lesson you’ll see how to talk about

money in a natural way in English.

You’re going on holiday again?!

How can you afford it?

I can barely pay my rent each month.

Well, I’ve been saving up for it.

How do you do it?

I make a budget for each week, so I decide how much I can spend, and what I can spend

money on.

That way, I know how much I’ll save.

But how does it work?

I’m pretty careful with my money, but I find it really difficult to save much.

It’s the little expenses that add up.

You buy a bottle of water here, a sandwich there, a takeaway pizza in the evening…

They don’t cost much, but over time you end up spending more than you realise.

I guess you’re right.

But, how do you stick to it?

Don’t you just want to have a takeaway pizza once in a while?

Ask yourself: which would you rather have?

Most people waste a lot of money on things they don’t really want.

I really love travelling, so I’m happy to cut back on some less important things so

that I can pay for it.

You’re right, but I don’t think I could be that frugal.

I’m not a big spender or anything, but I really enjoy splashing out and treating myself

occasionally.

Here’s a question: can you name three things you can do with money?

You heard a lot of useful phrases in the dialogue.

Of course, you can spend money.

You can also save money or waste money.

You spend money on something.

For example:

I don’t spend much on food.

He spends a lot of money on gadgets and technology.

How much do you spend on rent every month?

You can use waste money in the same way:

They waste a lot of money on things they don’t need.

Someone who spends a lot is a big spender.

The opposite?

Someone who spends very little money is frugal.

These words are neutral; they don’t have positive or negative associations.

What about save money?

You can save for something, or you can save to do something.

Often, instead of saying save money, you can use the phrasal verb save up, which has the

same meaning.

For example:

I’m saving up for a holiday next year.

We’re saving up to buy a car.

In order to save money, you can make a budget: you make a spending plan, and write down everything

you spend so that you stick to your plan.

If you’re saving for something, you might need to cut back on other things, meaning

that you spend less than usual.

On the other hand, some people aren’t so good at saving.

Some people like to splash out; they spend money on things they enjoy.

You can also treat yourself, by spending more money than you usually would in order to do

something nice for yourself.

What about you?

Are you a big spender, or are you more frugal?

Do you find it easy to make a budget and save money, or do you like to splash out and treat

yourself?

Think about these questions and how you could answer them.

If you aren’t sure, remember that you can go back and review the dialogue and the explanations

again.

Let’s move on.

So, I’m thinking of moving to London.

I got a job offer, but I’m not sure about the salary.

It sounds good, but I’ve heard London is expensive, so I’m not sure.

I guess it depends on your lifestyle, but you definitely need more than in other places.

My friends who live in London all make decent money, but they don’t have much left over

at the end of the month.

Mostly, they’re just getting by.

They offered me 25k.

That would be okay in most places I’ve lived, but I’m not sure I’ll be able to make

ends meet in London.

It’ll be challenging!

That’s on the low side, for sure.

Put it this way: I know someone who makes around 45k, and she says she struggles in

London.

Anywhere else, you’d be very well-off making that sort of money.

Hmm…

I guess I’ll look for something better.

In most English-speaking countries, people talk about annual salaries: the amount you

make each year.

Also, it’s normal to talk about the amount before tax.

For example, ‘25k’ in the dialogue means 25,000 pounds per year before tax.

In case you’re wondering, the average salary in London is around 29,000 pounds per year,

while the average cost of living for a family of four is around 4,000 pounds per month,

assuming a comfortable but fairly basic lifestyle.

If your salary is higher than average, you can say you make good money or make decent

money.

In this case, you’ll probably be well-off: not rich, but with enough money to have a

nice lifestyle and not worry about money.

On the other hand, if you only just make enough to cover your costs, you can say you’re

just getting by.

This means that you have enough money to live, but not much more.

If you say, I’m just getting by, it suggests you don’t have a lot of extra money to spend

on eating in restaurants, going out, travelling, and so on.

For example:

I don’t earn a lot, but I get by.

--> Meaning: I make enough to pay all my bills, but I don’t have much spare money.

If someone doesn’t even make enough to cover their basic expenses, like rent, bills, food

and transport, then they are struggling.

You can also use the phrase make ends meet, which you heard in the dialogue.

Do you know what it means?

Make ends meet means to cover all of your expenses.

Let’s see some examples:

I can barely make ends meet.

He’s struggling to make ends meet.

I don’t know how we’d make ends meet if we had another child.

If you say that someone can barely make ends meet, you mean that they don’t earn much

money, and so it’s difficult for them to pay all their bills and cover their regular

expenses.

What salary do you need to make to get by where you live?

How much does someone need to make to be well-off?

Think about these questions and how you would answer them.

Let’s look at the next section.

Did you hear?

He might lose his house.

He told me he’s six months behind on his mortgage payments.

Seriously?

I knew he was in debt, but I had no idea it was that bad.

He has other loans too, apparently.

The car, the furniture: everything was bought on credit.

He has three or four credit cards, all maxed out.

He owes a lot of money.

What’s he going to do?

Well, he can’t even keep up with the interest, let alone the actual repayments.

He’ll have to declare bankruptcy, but he’ll lose everything.

That’s awful.

Of course, he should have been more responsible, but how could they lend him so much money?

They must have known he wouldn’t be able to pay it back.

I don’t know.

It’s a bad situation.

When you borrow money from the bank, you take out a loan.

If you’re borrowing money to buy a house or an apartment, there’s a special word

for it: mortgage.

The spelling is strange, so practice the pronunciation: mortgage.

You need to repay a loan.

Generally, you do this by making payments every month.

Some of the payment is interest: an extra percentage which you pay to the bank.

When you finish paying back a loan, you pay it off.

If you have a lot of loans, then you’re in debt.

This means you owe money.

In the dialogue, you heard the phrase he owes a lot of money.

Let’s look at some more examples with this language:

It’ll take us another ten years to pay off our mortgage.

The interest on our car loan is ridiculously high.

I never borrow money; I don’t like being in debt.

In the dialogue, we were talking about someone who had bought a lot of things on credit.

If you buy something on credit, you take out a loan just to buy this one thing.

We also mentioned that he has maxed out credit cards.

You max out a credit card when you borrow the maximum amount you can on it.

Finally, if you can’t pay back your debts, you’ll have to declare bankruptcy.

Your debts are cancelled, but you also lose anything you have which is worth money.

So, think about some questions: have you ever taken out a loan or bought something on credit?

In your country, if someone is in a lot of debt, can they declare bankruptcy?

What happens to the money they owe?

Again, think about how you would answer these questions, and review the dialogue and the

explanations if you need to.

Ready to move on?

Let’s talk about one more thing.

Can I tell you something?

What?

I’m so excited!

I’m going to be rich!

Really?

How’s that?

I found this article online.

It told me about all of these shares which are definitely going to go up very soon.

I bought as many as I could.

Now I just have to sit back and wait for the money to come rolling in.

Are you sure about this?

How much did you put in?

All the savings I had.

And…

Are you sure that’s a good idea?

Why not?

These shares will take off, and I’ll double or triple my money.

It’s easy.

What if they go down?

You could lose everything!

It’s not likely.

These companies are solid.

It’s a one-way bet!

So, which companies did you invest in?

Well, one was… er… .and then… er…

I can’t actually remember the names, but it’s very exciting stuff.

Biotech, you know?

Oh, really?

Well, good luck.

You can buy me dinner when you’ve made your first million.

Deal!

What can you do with your savings?

You can keep them in the bank in a savings account, but you won’t earn much interest.

Alternatively, you can invest in something, like shares, bonds, or funds.

You can say shares or stocks; both have the same meaning.

You say stock market, but in other cases, share is more common.

You can invest in or put money into something.

More informally, you can also get into something.

For example:

Do you think I should get into crypto?

He put half of his savings into government bonds.

You should only invest in shares if you know what you’re buying.

When you buy an asset, like a share or a bond, its price can go up or down.

If it goes up very far or fast, you can say it takes off.

If it goes down very fast, it crashes.

For example:

I bought Apple shares in 1989.

I knew they’d take off one day!

They lost a lot of money when the stock market crashed in 2008.

If you do well, you might double or triple your money.

Triple means you increase something three times; for example, if you turn 100 dollars

into 300 dollars.

If you don’t do well, you could lose everything or get wiped out.

If you get wiped out, you lose all of the money you invested.

Let’s look at some example sentences:

If you make 7 per cent a year, you can double your money in ten years.

He put his life savings into Enron shares, then got completely wiped out.

If you had savings to invest, what would you invest in?

Think about how you would answer.

Finally, we have one more question for you: some people say that money can’t buy happiness.

Do you agree with this idea?

Let us know your thoughts in the comments.

Don’t forget to check out our website for more great free English lessons: Oxford Online

English dot com.

Thanks for watching!

See you next time!